DG Anti Profiteering Vs Prateek Infraprojects India Pvt. Ltd. (GSTAT)
The Goods and Services Tax Appellate Tribunal considered proceedings arising from allegations of profiteering under Section 171 of the Central Goods and Services Tax Act, 2017, in relation to construction services provided for a real estate project. The matter originated from a reference by the Standing Committee on 24.01.2020 based on complaints alleging that the benefit of input tax credit (ITC) under GST had not been passed on to homebuyers.
The Director General of Anti-Profiteering (DGAP) submitted an initial investigation report on 27.11.2020. The case was thereafter referred back multiple times for reinvestigation by the erstwhile National Anti-Profiteering Authority and later by the Competition Commission of India (then acting as NAA), including pursuant to directions issued following an order of the Hon’ble Delhi High Court dated 29.01.2024. In compliance with these directions, the DGAP conducted a fresh reinvestigation and submitted its report dated 04.06.2025, covering the period from 01.07.2017 to 29.10.2018.
In the reinvestigation report, the DGAP analysed the ratio of input tax credit availed to purchase value in the pre-GST and post-GST periods. It was observed that the percentage ratio of ITC to purchase value in the pre-GST period was 6.46, while in the post-GST period it was 2.70. The difference of –3.76 indicated that the ITC ratio had declined after the introduction of GST. Based on this analysis, the DGAP concluded that there was no increase in ITC benefits accruing to the respondent after the implementation of GST and, therefore, no additional benefit was required to be passed on to buyers.
